Economic factors that affect the colgate brand

Economic circumstanceors that affect the colgate brandThe overall economy of the country is display a stable growth. Therefore this sedulousness is also showing a growth of 10%. But the inflation is growing rapidly which is not a good sign for the new entrants. kind in the reside rate also affects the industry. Hence the new entrants be also threatened by the increasing interest rates.Economic factors do influence the bargaining advocator of buyers as inflation is the major factor that is affecting the consumers clayey.Economic factors do not affect the availability of substitutes. But since inflation is growing, so it is hard for the sad people to switch to more modern products same washing powder, tooth cattle farm. They would rather prefer oil to clean their clothes and use miswak to brush their teeth.Economic factors do have an affect on the bargaining power of suppliers as inflation is rising fast. Suppliers demand that they would provide the necessary raw material at a higher price. Exchange rate fluctuations also affect the damage of raw material.Economic factors do affect the rivalry among the competitors as all the players in the industry want to have cost leadership. The economic factors are favoring intense competition from the last five years. People have more money at their disposal. withal Pakistan is a consumption orient society (Hiatt, Jeff.).Quantitative Strategic Planning Matrix (QSPM)STRATEGY 1STRATEGY 2WeightsASTASASTASSTRENGTHS trade leader in surface care with 90% market share0.15Good Leadership0.06Employee commitment0.1230.3620.24Cooling crystal overt0.1Accurate forecast with respect to demand0.0740.2820.14High EPS0.0830.2420.16Strong advertisement and advancemental campaign0.0820.1630.24WEAKNESSESIT not used optimally0.1340.5220.26No ecommerce0.130.320.26No proper use of forward integration0.0520.130.15They are not exporting their products to other countries0.061OPPORTUNITIESExploring into new categories like shampoo, hand wash , body wash, shower gel0.1420.2840.56 country-bred population switching from miswak to toothpaste0.06Gap in tooth brush market0.0820.1630.24Implementation of ERP(SAP)0.1440.5620.28People becoming hygiene and smasher conscious0.120.230.3No layoffs0.07THREATS(T)Raw material and energy prices are increasing0.1230.3620.24Inflation in the country0.0730.2120.14Competitors re launching their products0.120.230.3Competitors increasing their marketing budgets0.0620.1230.18Unstable law and order conditions.0.061TOTAL4.053.69 challenger among quick competitorsYes (+)No (-)The industry is growing rapidly.The industry is not cyclical with intermittent overcapacity.The fixed costs of the business are relatively low mete come to the fore of total costs.There are significant product differences and brand identities between the competitors.The competitors are diversified rather than specialized.It would not be hard to get out of this business because there are no specialized skills and faci lities or long-term contract commitments etc.My customers would incur significant costs in switching to a competitor.My product is complex and requires a detailed understanding on the part of my customer.My competitors are all of approximately the same size as I am. expositionThreat of competitors is high because the product is not unique as there are no product differences. Same products are available with all competitors like Unilever, Procter and Gamble, Shield, Oral B. Therefore rivalry is also increasing as demand in the economy has also increased for the last 5 to years. Majority of the competitors are MNCs which means that they have the necessary resource and skill (Hiatt, Jeff).Government FactorsGovernment regulations do have an affect on the rivalry among the competitors.Political factorsPolitical factors do not affect the rivalry among the competitorsEconomic factorsEconomic factors do affect the rivalry among the competitors as all the players in the industry want to have cost leadership. The economic factors are favoring intense competition from the last five years. People have more money at their disposal. Also Pakistan is a consumption oriented society (Hiatt, Jeff).Social trendsSocial trends have changed, buyer are more aware of their purchases. So the players in the industry are always trying hard to increase their market share (Hiatt, Jeff).Technological changeTechnology is helping the companies to gain a competitive advantage over their rivals. Also research and schooling plays an important role in this (Hiatt, Jeff).KEY SUCCESS ACTORS FOR COMPETIVE SUCCESSLow cost production efficiency. CP has plants installed that take only 30 minutes for the plant to veer from the production of one product to the other.High quality manufacturing of products with very few defects.A strong network of wholesale distri only ifors.Gaining ample space on retail merchant shelves. (Examples Naheed, Aghas, Makro and other small shops.)Attractive packaging and st yling.Good length of product lines.Attractive commercials and advertising.Good composition in the industry along with favorable reputation with buyers.Market penetrationColgate can do market penetration by increasing its advertising, people always associate Colgate with tooth paste and have no ken that it produces personal and surface care products as well. They should show their logo on all its products so that people know the producers and this will increase customer obedience and also when people will come to know that Colgate is the producer then new customers will also buy the product (Hiatt, Jeff).They should also increase their promotion efforts by going to school and doing health awareness programs, also they should go to residential areas and make women aware of their surface care and fabric care products much(prenominal) as max, bonus and express etcProduct developmentColgate can also do product development by introducing new features in their already existing brands. They can improve their tooth brush quality and features by introducing flexi tooth brushes for special oral care. Also they can introduce whitening features in their feature in their tooth paste different colors of tooth paste can also be introduced to attract the kinds market. In their fabric care they can introduce in special features of defend the color of the cloth while washing and also whitening enhancing surfs to give a good shine to while clothes (Hiatt, Jeff).develop remainss to involve tolerate stakeholders in the introduction of changeSIX THINGS REQUIRED TO EFFECTIVELY IMPLEMENTING A STRATEGYAccording to Porter, to implement a strategy effectively six things should be followedCreate a formal planDistributorQuantity Item Price Negotiation, roll Reporting, Stock Details, Payment TermsHR ModuleInventory / StoreCreate a multifunctional teamTo effectively implement ERP, Colgate must first hire an self-reliant resource firm.Acquire licensing for SAP Implementation.Establish an independent IT unit for the monitoring of ERP. This department will coordinate with all the other departments (Robbins S, Mukerji).Communication of strategy inside and outsideAll employees in the company should be made aware of the new automated system. Each employee must be provided a minimal perceptivity of SAP but those employees who have to work on SAP the most should ofcourse be provided with proper training course of SAP. These includeFactory ManagerManager accountsWarehouse ManagerDistribution teamConsumer insight departmentOutside the company the strategy to implement ERP should be communicated properly to all the local and foreign suppliers of Colgate Palmolive (Hagberg).Consistency over timeAs learning Technology is progressing day by day, new changes in ERP are expected after certain time periods. Therefore it would become very important for Colgate to issue up with the changes in the software. For this purpose it would need to update it employees by providing trai ning whenever any change takes place in SAP (Hagberg).Use proper measurements another(prenominal) measures, not just financial measures would be required to test whether the system is working properly. These measures includeWhether the system is accurately forecasting demand, sales, price changesWhether or not there are any deviations in the actual versus projected salesEffectiveness of the internal processes after the strategy implementation (Robbins S, Mukerji).Test the strategy pick up employees and senior management in all departments whether they are satisfied with the new system of working. Talk to suppliers and distributors whether they want any more improvements in the new system of working (Hagberg).KEY DRIVING FORCESIndustry growthNow most of the people have knowledge about the different products and its advantages. The intense competition in industry and high demand enables the new entrants to compete in this market (Hagberg).Product innovationInnovation in product, as Co lgate has just introduced Max undecomposed in which the coolant crystals are present which none of the competitors has adopted yet. There is also room in innovation in washing detergents (Hagberg).Changing societal concerns, attitudes and life styleSince social issues are really effecting the use of product just like the use of Miswak which is the Islamic mode of cleaning the teeth (Hagberg).Use of E-commerce and Internet practice of online ordering and maintaining the stock level through e-commerce can be driving force in the industry. By using that they can provide products to customer which is look upon addition for them (Hagberg).This report is purely based on the finding from the Colgate expert and the secondary data analysis, and the reason for writing the whole report is to find the bar / hindrance a business men face and how the organization can minimize it through implementing the different strategies and analysis.The whole report research draws attention tothe fact tha t any problem can be eliminate if proper investigation and consideration can be observed the success is easy to get, Pakistan market is matured market and the competition is tough here because most of the customer is price conscious and act like butterflies, so targeting this kind of customer is quite difficult, but on the other hand it can be managed if the you can understand the market effectively and efficiently (Robbins S, Mukerji).Hiatt, Jeff. HYPERLINK http//www.change-management.com/tutorial-definition-history.htmThe definition and history of change managementHYPERLINK http//www.change-management.com/tutorial-definition-history.htm. http//www.change-management.com/tutorial-definition-history.htm.Filicetti, John (August 20, 2007). HYPERLINK http//www.pmhut.com/pmo-and-project-management-dictionaryProject prudence DictionaryHYPERLINK http//www.pmhut.com/pmo-and-project-management-dictionaryMoore, E.R., (accessed 1 April, 2001), Creating Organizational Cultures An Ethnographic Study, Eastern Academy of Management Virtual Proceedings,Moore, E.R., (accessed 1 April, 2001), Creating Organizational Cultures An Ethnographic Study, Eastern Academy of Management Virtual Proceedings,, R. Ph.D. Heifetz, D.Ph., 2000 (accessed 4 April, 2001), Corporate HagbergCulture/Organisational Culture UnderJerryding and Assessment,Robbins S, Mukerji D (1994). Managing organisations. Prentice Hall of Australia, McPhersons Printing Group, Australia.Sergiovanni, T.J. (1984) Educational Leadership, Leadership and excellence in schooling, Volume 41, Number 5, United arouses of America, page 4-13Kent State University 2000 (accessed 28thMarch, 2001), Kent State University Cultural Self-StudyInternal Communication of ChangeBy Dagmar ReckliesCircling the Pyramid Building Lasting Commitment to Change (pdf-file)by Edmond MellinaWhat Makes a Good Change Agent?by Dagmar ReckliesThe Role of the Change Master From Change Agent to HYPERLINK http//www.themanager.org/Strategy/Change Master.ht mHYPERLINK http//www.themanager.org/Strategy/Change Master.htmChange MasterHYPERLINK http//www.themanager.org/Strategy/Change Master.htmBy ruth TearleManaging Change Definition and Phases in Change Processesby Oliver ReckliesProblems in Managing Changeby Oliver ReckliesAuditNet.org provides a downloadable PDF of change management best practices.Fred Nickols wrote HYPERLINK http//home.att.net/nickols/change.htmHYPERLINK http//home.att.net/nickols/change.htmChange Management 101 A Primer.HYPERLINK http//home.att.net/nickols/change.htmSearchCRM.com provides resources on handling change management following a CRM upgrade.Neglecting your change control process can kill an IT disaster recovery plan.